NEW- Flipping out of state as 1st REI deal

[Brian Becker]

Hello everyone! I am fairly new to the BP scene and I am very excited to be apart of the community! I am completely new to REI- doing a bunch of reading, listening to podcasts, and picking peoples brains to learn from mistakes and taking advise. I want to use REI to accomplish my long term goal of being financially independent while being able to make an impact on people within my community and my church. I have a great situation at 24 years old blessed with a steady job, fantastic credit, and around $80k in the bank to help supplement my real estate endeavors. I have the opportunity to buy a single family house in Fort Walton Beach Florida (I currently live in Washington DC) in the next several months from a family member for much cheaper than what it is worth. I am not that familiar with the area, however after doing some market research I see the Fort Walton Beach/Destin area as a good one to start.

About the house: 

3 bed 2 bath; pool; 1624 sq ft 

Current ask price: $140K, estimated ARV: $240k

I plan on using a hard money lender with little money down at 10%-12% interest rates. I understand a lot goes into estimating rehabbing costs- completing an inspection with the general contractor prior to purchasing, requesting an itemized list of rehab needed with cost estimates, over estimating for other expenses that may occur in the process, and so forth. Of course keeping other costs in mind such as broker/lawyer fees, holding, and closing costs which is why the BRRRR and House Flipping Calculators are very helpful!

I wanted to get opinions and experiences on the process of acquiring GC bids, getting investor referrals for noteworthy contractors, and what I need to know about the draw schedules in order to complete a full scale reno in 90 days; for example do you pay 1/3 of expense budget up front to speed up the first steps and continue an as needed basis?

I would love to hear how your experiences have been investing out of state flipping/renting, and any advice I must keep in mind in order to be successful in this arena.

Thanks!